Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 4, Problem 4.18E
To determine
To Calculate: The cash flows from financing activities.
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Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.
Cash used for purchase of office supplies, $2,150.
Cash provided from consulting to customers, $48,100.
Cash used for purchase of mining equipment, $78,000.
Cash provided from long-term borrowing, $65,000.
Cash used for payment of employee salaries, $24,500.
Cash used for payment of office rent, $12,500.
Cash provided from sale of equipment purchased in c. above, $23,000.
Cash used to repay a portion of the long-term borrowing in d. above, $42,500.
Cash used to pay office utilities, $4,800.
Purchase of company vehicle, paying $10,500 cash.
Required:
Calculate cash flows from operating activities. (List cash outflows as negative amounts.)
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Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals. a. Cash used for purchase of office supplies, $2,400. b. Cash provided from consulting to customers, $50,600. c. Cash used for purchase of mining equipment, $83,000. d. Cash provided from long-term borrowing, $70,000. e. Cash used for payment of employee salaries, $25,000. f. Cash used for payment of office rent, $13,000. g. Cash provided from sale of equipment purchased in c. above, $23,500. h. Cash used to repay a portion of the long-term borrowing in d. above, $45,000. i. Cash used to pay office utilities, $5,300. j. Purchase of company vehicle, paying $11,000 cash. Required: Calculate cash flows from operating activities.
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.
Cash used for purchase of office supplies, $2,150.
Cash provided from consulting to customers, $48,100.
Cash used for purchase of mining equipment, $78,000.
Cash provided from long-term borrowing, $65,000.
Cash used for payment of employee salaries, $24,500.
Cash used for payment of office rent, $12,500.
Cash provided from sale of equipment purchased in c. above, $23,000.
Cash used to repay a portion of the long-term borrowing in d. above, $42,500.
Cash used to pay office utilities, $4,800.
Purchase of company vehicle, paying $10,500 cash.
Required:
Calculate cash flows from investing activities. (List cash outflows as negative amounts.)
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Chapter 4 Solutions
Financial Accounting
Ch. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - What is meant by the fraud triangle, and what can...Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - What is meant by separation of duties?Ch. 4 - Prob. 10RQ
Ch. 4 - Prob. 11RQCh. 4 - Prob. 12RQCh. 4 - Prob. 13RQCh. 4 - Prob. 14RQCh. 4 - Prob. 15RQCh. 4 - Prob. 16RQCh. 4 - Prob. 17RQCh. 4 - Prob. 18RQCh. 4 - Prob. 19RQCh. 4 - Prob. 20RQCh. 4 - Prob. 21RQCh. 4 - 22.What are two primary reasons that the companys...Ch. 4 - Prob. 23RQCh. 4 - Prob. 24RQCh. 4 - Prob. 25RQCh. 4 - Describe how management maintains control over...Ch. 4 - Prob. 27RQCh. 4 - Describe the operating, investing, and financing...Ch. 4 - Why is an analysis of the companys cash balance...Ch. 4 - We compared Regal Entertainment and Cinemark at...Ch. 4 - Prob. 4.1BECh. 4 - Match each of the following components of internal...Ch. 4 - Prob. 4.3BECh. 4 - Prob. 4.4BECh. 4 - During the year, the following sales transactions...Ch. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Prob. 4.8BECh. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Prob. 4.13BECh. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - On January 12, Ferrell Incorporated obtains a...Ch. 4 - Prob. 4.17BECh. 4 - For each company, calculate the ratio of cash to...Ch. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Below are several amounts reported at the end of...Ch. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10ECh. 4 - Prob. 4.11ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Below are cash transactions for Goldman...Ch. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Consider the following information: 1.Service...Ch. 4 - Prob. 4.20ECh. 4 - Prob. 4.1APCh. 4 - Prob. 4.2APCh. 4 - Prob. 4.3APCh. 4 - Prob. 4.4APCh. 4 - Prob. 4.5APCh. 4 - Prob. 4.1BPCh. 4 - Prob. 4.2BPCh. 4 - Prob. 4.3BPCh. 4 - Prob. 4.4BPCh. 4 - Prob. 4.5BPCh. 4 - An examination of the cash activities during the...Ch. 4 - Prob. 4.2APFACh. 4 - Prob. 4.3APFACh. 4 - Prob. 4.4APCACh. 4 - Prob. 4.5APECh. 4 - Prob. 4.7APWC
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- ed ces Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals. Required: Calculate cash flows from operating activities. (List cash outflows as negative amounts.) Ic raw 11 a. Cash used for purchase of office supplies, $1,500. b. Cash provided from consulting to customers, $41,600. c. Cash used for purchase of mining equipment, $65,000. d. Cash provided from long-term borrowing, $52,000. e. Cash used for payment of employee salaries, $23,200. 1. Cash used for payment of office rent, $11,200. g. Cash provided from sale of equipment purchased in c. above, $21,700. h. Cash used to repay a portion of the long-term borrowing in d. above, $36,000. 1. Cash used to pay office utilities, $3,500, Purchase of company vehicle, paying $9,200 cash. Cash flows from operating activities < Prev 8 of 8 Amount Included in Operating Cash Flows (1,500) 41,600 (65000) 52000 (23,200) 11,200 21,700 36000 (3,500) (9,200) Nextarrow_forwardThe following information pertains to an entity’s cash account: Cash balance, beginning 880,000 Cash receipts from the sale of goods 8,000,000 Cash receipts from dividends and interest 80,000 Cash payments for interest 250,000 Cash payments to suppliers of goods 6,000,000 Cash payments to employees 800,000 Cash payments to acquire property, plant and equipment 1,200,000 Cash receipts from sales of property, plant and equipment 280,000 Cash payments to acquire equity or debt instruments of other entities 520,000 Cash receipts from sales equity or debt instruments of other entities 430,000 Cash proceeds from issuing shares 1,600,000 Cash payments to owners to redeem the entity’s shares 340,000 Cash proceeds from borrowings 2,100,000 Cash repayments of amounts borrowed 1,700,000 The entity’s cash balance at the end of the period is a. 2,560,000 b. 2,650,000 c. 2,480,000 d. 2,840,000arrow_forwardWhich item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.arrow_forward
- The controller of Newstrom Software, Inc., provides the following information as the basis for a statement of cash flows: Cash collected from customers $785,400 Income taxes paid $58,300 Cash paid for interest 22,100 Payment of dividends 35,000 Cash paid to employees and other suppliers of goods and services 221,750 Principal payments on mortgage payable 60,000 Cash paid to suppliers of merchandise 395,540 Principal payments on long-term debt 22,000 Cash received from the issuance of long-term debt 40,000 Proceeds from the issuance of common stock 85,000 Cash received from disposal of equipment 42,500 Purchase of equipment 120,000 Cash received from sale of long-term investments 71,400 Purchase of long-term investments 75,800 Required: Use a minus sign to indicate any cash outflows: 1. Using the information provided above, calculate the net cash provided (used) by operating activities. 2. Using the information provided above, calculate the net cash…arrow_forwardMetlock, Inc. recorded the following cash transactions for the year: Paid $149000 for salaries. Paid $64600 to purchase office equipment. Paid $14800 for utilities. Paid $5000 in dividends. Collected $286000 from customers. What was Metlock's net cash provided by operating activities? O $57600 O $137000 O $117200 O $122200arrow_forwardThe controller of Newstrom Software, Inc., provides the following information as the basis for a statement of cash flows: Cash collected from customers $785,400 Income taxes paid $58,300 Cash paid for interest 22,100 Payment of dividends 35,000 Cash paid to employees and other suppliers of goods and services 221,750 Principal payments on mortgage payable 60,000 Cash paid to suppliers of merchandise 395,540 Principal payments on long-term debt 22,000 Cash received from the issuance of long-term debt 40,000 Proceeds from the issuance of common stock 85,000 Cash received from disposal of equipment 42,500 Purchase of equipment 120,000 Cash received from sale of long-term investments 71,400 Purchase of long-term investments 75,800 I am having trouble classifying what goes into what category (Operating, Investing, or Financing) for the cash flows and so I wanted to ask about this question while I do it. Use a minus sign to indicate any cash outflows: 1. Using…arrow_forward
- The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Current assets for this Corporation are $45,000. $55,000. $95,000. $155,000. $190,000.arrow_forward26. Calculate cash flow from Operating Activities of R Ltd. : (i) If R Ltd. is a manufacturing firm, or (ii) If R Ltd. is a financing company. Informations: Cash Revenue from Operations 20,00,000 Collection from Trade Receivables 4,20,000 Wages paid to factory workers Interest received 1,50,000 6,50,000 Đividend received 1,40,000 Cash purchases Credit purchases 8,70,000 6,00,000 Payment to Trade Payables 5,90,000 10,00,000 Building purchased Interest paid interim Dividend paid 2,30,000 1,50,000arrow_forwardThe Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Fixed assets for this Corporation are $45,000. $55,000. $95,000. $155,000. $190,000.arrow_forward
- Louisiana Products Company had the following positive cash flows during the current year: received cash from customers of $750,000; received bank loans of $35,000; and received cash from the sale of common stock of $145,000. During the same year, cash was paid to purchase inventory for $345,000, to employees for wages of $230,000, and for the purchase of plant assets of $217,000. Calculate the amount of cash provided by or used for operating activities by the direct method. Not cash operating activitiesarrow_forwardRobinson Company has provided the following information: Cash sales totaled $255,000. Credit sales totaled $479,000. Cash collections from customers for services yet to be provided totaled $88,000. A $22,000 loss from the sale of plant and equipment occurred. Interest income was $7,700. Interest expense was $19,900. Cost of goods sold was $336,000. Rent expense was $36,000. Salaries expense was $49,000. Other operating expenses totaled $79,000. Income tax expense was $8,000. How much was Robinson's operating income? Group of answer choices a)$221,800 b)$322,000 c)$199,800 d)$234,000 e)$226,000arrow_forwardUmberg Company started the year with $119,200 cash and reported net cash provided by operating activities of $240,000, cash paid for dividends of $49,600, cash received from stock issuance of $46,000, cash paid for equipment purchases of $158,000, cash paid for intangible assets of $124,000, and cash paid on bank loan of $43,000. Required: Calculate the following: Net cash provided by (used in) investing activities. Net cash provided by (used in) financing activities. Ending cash. Free cash flow.arrow_forward
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